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Varney Company

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California 19, Us 18, New York 13, Boeing 9, Cuomo 6, Napolitano 6, Stuart 5, Sandy 5, America 5, Obama 5, Doug Schoen 5, Wendy 4, United States 4, Nicole 4, Newtown 3, John Aresta 3, Jonathan Morris 3, Charles Payne 3, London 3, Washington 3,
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  FOX Business    Varney Company    News/Business.  
   Wall Street news. New.  

    January 16, 2013
    9:20 - 11:00am EST  

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radio. on television stuart varney, "varney & company" and i'd like to send this record, my friend willie nelson, out to stuart varney. ♪ ♪ ♪ ♪
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♪ ♪ i ain't going down brokeback mountain ♪ ♪ no i ain't going down on brokeback mountain ♪ ♪ ain't right (bleep) ain't right (bleep) ain't right ♪ ♪ imus in the morning ♪ >> two big stories a new nightmare for boeing's dreamliner and the president running into a real fight on guns. good morning, everyone, the pilot smelled smoke, emergency landing, passengers evacuated and japan grounded all the 787's
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that they fly. a big blow to the nos innovative plane in a generation, less than three hours from now, the president's sweeping plan for guns. several key votes requires support in congress, there's opposition from both sides of the aisle. meanwhile, this astonishing number, n.r.a. membership up about a quarter million in a matter of weeks. "varney & company" is about to begin. [ male nouncer ] this is joe woods' first day of work. and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fish and me from the great northwest. he'll start investing early, he'll find some good people thelp guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.
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♪ big ole jet airliner, don't carry me too far away ♪ ♪ big ole jet airliner ♪ >> we play that song, that's because boeing's big ole dreamliner, serious pr problems and maybe more problem, a lithium ion battery problem. people using chutes after an emergency landing in japan. that video is terrible pr.
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widely held stock, it's going to be down big today the latest in a series of headaches for the dreamliner in the past week. down about 5%. a month over newtown and america's focus still very much on guns. hours from now, president obama announces his recommendations for stricter gun control. it will be a live event at the white house, school children will join the president in the announcement. what's expected? executive orders for stricter background checks and streamlined gun tracking programs. and ban on magazine capacity will cause congress to act. a vote, you can expect a vite. whatever legislation the president pushes will be met with opposition in congress and even harry reid says an assault weapons ban is unlikely to pass. gun rights advocate, look at this, since the newtown shooting a little over a month ago, n.r.a. added 250,000 members, quarter million people in a
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month and brings total membership to 4.25 million. here is another number, the fbi says it conducted record 2.8 million background checks in december, one month. all application for gun purchases, and gun sales are booming and manufacturers can't keep up with demand. last night governor cuomo signed what he called the toughest regulations in the country. magazine capacity limits and assault weapons ban and a controversial part of the new law, requirement that obligates, therapists, doctors as well to tell authorities if they think a patient will cause harm to others, a big shift in the patient-therapist privacy regime. a couple of minutes from now, clinton advisor doug schoen will join us, supports a national assault weapons ban. what does he think of a shift in the patient privacy? we'll ask him in a couple of minutes. the nra is not backing down, the latest ad going after president
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obama's push for gun control. >> are the president's kids more important than yours? why is he skeptical about putting armed security in our schools, when his kids are protected by armed guards at their school? president obama demands the wealthy pay their fair share of taxes, but-- watching the drama with our economy in the middle and debating because the policy, is that your money don't miss cavuto tonight at 8.
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>> at 8:30 eastern time, a lot of numbers from the government. and mostly they do not affect the market and that's the case in point today. the consumer price index, no change in the month of december. over the past year, the consumer price index has gone up 1.7%, you can safely say no real inflation measured by the government at the consumer level. no impact on the market either. all right, the trading has started and the dow industrials% the opening trend is mixed. you can't say there's an opening trend one way or the other, but bear in mind the dow is at 13,500. that's a pretty high level. that will be 700 points away from the all-time high for the dow. first off though, let's check boeing. a the lot of you probably own the stock, maybe in a mutual fund, so, nicole, with all the problems for the dreamliner overnight, where-- look at that. >> look at that, it's down dramatically, almost 4 1/2%, now you're talking about a battery error and with that battery
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error, we're seeing the stock lower and in japan, they actually grounded the fleet that they have. and this comes on the heels of the other things that you and i discussed, including a fuel leak, electrical issues, and brake issues now we can add in a battery error, now, we should say people say with a new plane these are all growing pains, it's not unusual to see little things like this happening, but when they're all like that, four in a row in a week, not good. stuart: it's not a little thing in public relations level. when you see passengers sliding out of planes, that's very, very bad pr. if there were a real problem with the lithium ion batteries, that's a big problem because they create all the juice and a lot of juice goes into a dreamliner, if they've got a serious problem with the battery, they've got a serious problem with the whole plane. >> i'd be terrified if i were on a plane and they said there was fuel leak, electrical problem,
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brakes, anything to do-- i always want today do one of those slides. stuart: that's not good for the dreamliner and public relations image. that's real bad. i've got to break away nicole, boeing down 4 1/2 almost 5%. that's where we are there. j.p. morgan chase, fourth quarter profit up 55%, earnings for the year sit a record. here is a look at that stock price, not good enough down 1 percent. look at goldman sachs, 2.8 billion in profits in 13 weeks, triple the previous quarter, the quarter before. and big gains in stock and bond values and more money coming into goldman's trading arm. up 2%. back to nicole, i've got chipotle and it's down huge, why? >> they're coming out and talking about some of the costs they have been facing and it's not good news. if huge is a great word.
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down 9%, 270 and a penny. and in addition to food costs are, marketing costs and related expenses and the fourth quarter earnings report, with the numbers you can see the stock sells off dramatically. stuart: by the way, the dow is now down 57 points, a lot of that drop will be boeing, because boeing is a dow component. let's get back to guns. one major part of new york's new gun law requires therapists, doctors, nurses, social workers to tell the government if they believe a patient is likely to harm themselves or others. doug schoen is here, former clinton advisor, fox news contributor, doug, i say that this is a break through, this is a real shift in gun control legislation because in my opinion, this breaches that therapist-patient privacy principle which we've always had in the past. >> well, therapists do have a standard to go to law enforcement if they believe that
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there is a clear and immediate danger in most states. the question here, stuart, and i think you're right, is this is a murky provision, the therapeutic community agrees with you. stuart: i agree with you, implementation, i don't see how you can do it, it's a sift in standards. this is a shifting standard and one thing a great many people agree on, the need to keep the guns out of the hands of mentally unstable people and this attempts to do this, successfully or otherwise, it attempts to do that. >> i think that's a good first step, but you're right, stuart, unless we have clear rules for therapists to protect patient privacy, we're going down a slippery slope that could be very dangerous. >> the other side of the coin, the n.r.a. and privacy, talk to that. >> well, i have to tell you, stuart, i saw the ad you just played before the break. i think to bring the president's children into that ad is a
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profound mistake. particularly on a subject like this. now, it's a fair issue for the nra to raise the issue of guns in schools and the issue of gun-free zones versus armed guards in schools, i see that and understand that and by and large the american people want armed police in schools. but to bring president obama's children in, i think it's just plain wrong. stuart: a pr mistake and a moral mistake? >> both, stuart, both. stuart: okay, how about this? the nra brings in 250,000 new members in what, just over four weeks, since newtown. that's astonishing. >> stuart, we are, and i think we agree on this, living in a profoundly polarized and divided time. this is a reflection of that. what i hope from the president today, an effort to bring people together, background checks and assault weapons ban and hope he tries to bring us together. sadly he didn't in the news
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conference the other day. stuart: and in a couple of minutes, father jonathan morris is going to be with us. what does new york's health law mean between the confidentiality between a priest and a penitent? and a possible oil boom in the state of california, it's being compared to saudi arabia? how much money and will they actually do it? the answers may be surprising. and the answers the top of hour. now, this, federal welfare spending in in country skyrocketing. according to a new study welfare spending will jump 80% the next decade to a total of 11 trillion dollars. doug schoen is with us. i want to bring you back in. >> sure. stuart: didn't you help write
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president clinton's law doesn't this reverse it. >> i helped the president and this does reverse it, the '90s was a very good time and helped to reduce the welfare roles, but stuart we've talked how tiermentiermen entitlements have to be put on the table for a plan. we need to reform, medicare, medicaid, welfare and social security. stuart: he won't touch entitlements. >> it's part of the concensus, that says he has to do that just like the republicans were willing by and large to take on revenue. stuart: stay there, a couple of issues going on here. >> sure, sure. stuart: after a long delay the house of representatives finally approved a 50 1/2 billion dollars hurricane relief bill for hurricane sandy. it passed despite being loaded with pork. 240-180. some said we don't want it, i'm astonished, your thoughts.
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>> i'm sad we couldn't have a clean bill for sandy, once again there was pork loaded into a bill that, whose purpose is undisputable and undeniable. reflects badly on the congress of the united states. stuart: a republican congressman proposed offsetting spending cuts, he wanted a 1.6% cut in all federal agencies across the board, including the military. one republican said that was slash and burn vital programs? what? what? >> i'm not sure when we have emergencies we need to do tit for tat cuts, but i will say this, the larger issue students we have to take on spending and do it in a systematic way and no one is talking about a plan to lower rates, cut defense and limit deductions. stuart: nobody, the solution. at 11 eastern time a group of democrats are going to talk about no more debt ceiling, get rid of it. outrageous.
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>> ridiculous. stuart: i think we're in agreement. >> we are, aggressive agreement. stuart: doug schoen, thank you very much. >> thank you, stuart. stuart: i've got the seven early movers for you. profits climb 23% as expected at bank of new york melon. the stock is up-- or down about a buck. the hand bag maker, vera brad lee raised its outlook, the women's clothing retailer, christopher and banks, expects higher sales and they're up. interactive brokers took in less than expected and they are down, the name of the company. printed circuit manufacturers, anticipating better than expected results and it's up. wendy's reports higher profits, there's a stocky know. gives an upbeat outlook, wendy's 12 cents higher. 2%. chipotle as we told you earlier, profits disappoint, it's down big. it was down 9% earlier and now it's down 7. $23 lower for chipotle and the dow is down 62. we just heard from doug schoen
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on new york state's new gun law requiring mental health professionals to report patient, if they cause harm. what about priests and confessions? father jonathan morris on that next. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's anothereason more investors are saying... [ all ] i'm with scottrade. [ male announcer ] how do you turn an entrepreneur's dream... ♪ inta scter that talks to the cloud? ♪ or turn 30-million artifacts...
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>> check the big board, please, we're down 64 points. about 20 of those points have been lost because of boeing, which is having more trouble with the dreamliner in japan especially. down goes boeing and that takes 20 points off the dow. look at price of oil. we haven't checked that for a while. we're at 93.39 as we speak, been there for about a week. we're focusing on one part of new york state gun control law, the part requires therapists and doctors to tell the authorities if they think a patient is likely to harm themselves or others. it's a breach-- this is my opinion, i think it's a breach in the privacy
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principle. it is the standard of what is private and what is not. and bring in father morris. this couldn't apply to the clergy and the confessional. >> it doesn't in fact, it's a slippery slope, not only in confection, but even as they're talking before. somebody comes to me, father in confidentiality i want it tell you, these are some of the thoughts i'm having. there and you have to make the prudential decision. what i would do is stop someone and say, we can talk about things confidentially, if you make a threat or tell me you're going to do something violent to another person, i will stop you physically and if necessary, i'll turn you in to the police. >> that's separate from the confessional. that's to you sacrosanct.
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>> and confession is father i did something. >> if someone is about to do something, i'd say, wait, stop, this is not confession, but if the government starts making law that begin to infringe on the seal of confession, right, well, my ministry, i will go to jail as many others would, before allowing them to do that. stuart: let's go back to you offering almost social services, a spiritual counseling, not confection, but spiritual counseling. if someone said i'm thinking of doing something bad you have to stop them and don't go further. >> that's a prudential judgment. stuart: i'm trying to transfer the situation of priest and penitent. to the therapist. >> pastoral guidance. stuart: the therapist says i have to-- it's not therapy. >> we have to be careful as a priest or pastor that we don't
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get turned into people who are absolutely afraid of what the government could do to us when we know we could help a person. stuart: a slippery slope. >> it is. i think one thing that should be mentioned, although laws are very good and helpful sometimes, the real problem i see right now is lack of access to mental health. i've had people in my parish who need -- and could be dangerous, who really need mental help and the insurance would not cover it, and psychiatrists throughout the city of new york i know are unable to treat people because the people do not have proper means to get treatment. stuart: i just wonder if someone who needed psychiatric help would refuse to go and get it on the grounds that they don't want what they're thinking, what they're feeling to be shared with the government. >> yes, of course, especially if someone is not altogether. stuart: it is possible that this
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new gun law in new york state could push people away from the psychiatric counseling that they actually need. >> right, depends on how it's implemented of course, and if the government starts going and bringing therapists to the court or sending them to jail when something bad happens, then of course, things will get very, very dangerous. stuart: it's an extraordinary situation, father jonathan. thank you for bringing and shedding your light upon it, we appreciate it. thank you, father. time for your gold report. where are we on gold. down 8 bucks. now, this, in one smoothie shop you have to pay a different price depending whether you're a liberal or a conservative. would you pay extra for being a liberal? would you? i don't know about that. elizabeth macdonald and charles payne are here. find out which side they're on in this debate. ♪ when way mind's on my money
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>> all right. a smoothie bar owner in utah is charging liberals $1 more for drinks than he charges
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conservatives. customers identify themselves as liberal or conservative and pay accordi accordingly. the owner says he donates the extra money along with tips to conservative causes. come on, charles, what are you going to say? >> listen, he lets them know upfront. stuart: he says, so far only three self-confessed liberals who paid the extra buck for the smoothie. >> must be one heck of a smoothie. >> at least he's transparent about it, more than the government. i think he should charge a progressive tech and how liberal you are and tax credit for less liberal. stuart: you'd charge them $10,000 actually. >> yes. stuart: pink bed wetter. we're out of time. could it be an oil boom in california? it could happen, they have to go get the oil. coming up, new at ten, the money the formerly golden state could
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make to bring it golden all over again. more on mental health and guns and so is a police chief, who is pro gun control for a very personal reason. stay right there, please. [ male announcer ] how can power conmption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in thu.s.? at t. rowe price, we understand the connections of a complex, global economy.
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stuart: new at almost an:00 the oil be the answer to california's financial problems. a new report says the former legal and status and on a wealth of shale oil rivaled only by saudi arabia. that is how much and have. they just have to go and get it. in a few minutes the man who says this could bring california $1 trillion for everything california heart desires. check the big board, down 50 points putting the dow below 13-5. it is when they morning and hear the company. elizabeth macdonald, charles payne, nicole petallides, all of them in a line, all of the company this morning. a nightmare, a pr nightmare for boeing. look at this video. an emergency landing for dreamliner in japan, 787, two japanese airlines grounder dreamliners and you have p r video like that, emergency evacuation of people shooting down the chutes. the stock must be down. nicole: is not good news for
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boeing. you can see it is down 3.3% and that weighs on the dow jones industrials. is on the heels of the other issues they had including brake issues, electrical issues, a fuel leak and now this one as well. this is a battery error. all of this happening in about a week. boeing has been under significant pressure and i will put it on my bucket was to go down one of those lines. stuart: i want to fly the dreamliner. i love flying and i would fly in a moment's notice. nicole: 5 dreamliner and get evacuate and we will both be happy. stuart: apple way down yesterday, dropped below 490 and is of today but how much? nicole: around $500. the bottom is in and you had traders yesterday saying anything under 500 you should be buying and you see the real
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disparity, the nasdaq is apprised of apple so heavily with and a barrel on the dow and the s&p. stuart: it really does bounce. >> whenever you have a significant drop for apple, sooner or later in a small period of time, it bounces back up, modest bounce so far. nicole: the lows have been lower. stuart: if you are a long-term investor it is a different thing. thank you very much. a 52 week high, $2.8 billion profit, and up 2%. the big story of the day, quite possibly the year, at 11:55 eastern, president obama will deliver his recommendations on stricter gun regulations issuing
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from the white house. executive actions expected but congress will still have to act on the biggest issues, and assault weapons ban and limit on high-capacity magazines meaning there has got to be a vote. gun advocates clearly ready for the fight. cnr a says it is 250,000 members in four week sent a couple days. total membership 4.25 million people. the fbi says it conduct a record 2.8 million background checks in one month, december, all for applications for people who want to buy guns. president obama will make his recommendations today, n.y. already acted. governor cuomo signed the toughest gun regulations into law last night. and assault weapons ban, magazine capacity limits, controversial provision, requiring mental health professionals to disclose whether or not they think a patient is a threat. the judge will join us on that and a couple minutes.
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10:15 eastern, 11 or 12 minutes from now police chief john arrester will join the company. he support stricter gun control because of his deep personal collection to mass shootings and. he is coming up in a few minutes. another issue surrounding the white house event that has some people obsess, the presence of children. president obama using children to get his point across to congress and constituents on the issue on the contentious issue. the children who will attend wrote letters to the president after sandy hook like this one, quote, dear mr. president, i am 10 years old and i am writing you to stop the violence. i'm very sad about the children who lost their lives. later this hour a mother of 6 response to using children as political theater at the white house, right or wrong? 10:45 this morning. now to our new at 10:00 story, calif.'s solution to its massive debt problem could be rider and
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a california feet. the formerly golden state is home to largely untapped oil resources, northeastern california. they rival saudi arabia's. if tapped could bring the state $1 trillion according to our next guest. he is mark mills, he is a senior fellow from the manhattan institute. a couple questions but first of all, how much oil are we talking about and how do we get it? >> we're talking a lot of oil. oilfields are bigger than everyone has been writing about in north dakota and they are bigger than texas oil shales. the way we get it is modern smart drilling technology and the technology has changed access to oil that turned upside-down the entire oil and gas business. what has been missing is the oil
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changes. stuart: under northwestern or northeastern california there is a massive shale oil deposit, a new technology allows us to go get it. are we talking 1 hundred billion barrels? any idea? what is the number? >> the shea oilfield is thought to be fifteen billion barrels which is close to the conventional oil reserves of the united states. california was founded largely on oil money. many forgot this. hollywood was funded by oil wells and the technology then was a new in the 19 -- in 1899-1910. now it is new again because of information technology. smart drilling techniques. stuart: the obvious question is we got the oil, tens of billions of barrels. they have got it. will they go and get it? we are talking california where the environmentalists rule the roost. >> california is an interesting place. it often surprises people. 11 tax revolt right before
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reagan got elected. i suspect with this kind of money and what california needs for money and modern technology is much safer and cleaner and easier to extract oil than ever in history i think the sheer money will cause them to eventually do that. stuart: hold on a second. we put california on fantasy island regularly. i read your article in the wall street journal yesterday. this is what you talk about. did you say and governor brown fired two people who were in charge of drilling and running down drilling in california and that to you is a positive sign. >> that is a very positive sign. the bureau of land management, lands in the monterey shale option offense a lot of leases to the land, there's already oil production there for a long time. the key is to step up and get access to land and have the
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state entered -- the governor is a pragmatic guy, smart guy, you will recognize and does recognize new technology to make this clean and safe and generate -- staggering amounts of money for the state. tax receipts are incredible. stuart: have you been to california recently? have you seen their voting record recently? >> i have. i am not saying it is going to happen tomorrow. i am a believer in two things, the march of technology which unleashed this oil and people eventually like the money. this is a lot of money. easiest place to get money without subsidies, without incursion or anything except letting people and business do their business. stuart: how much money are we talking about? maybe $1 trillion. >> total economic benefits would run for california in the trillion dollar range but just for the state for its royalties and tax receipts the state gets
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$1 billion a year from oil extraction in california but california used to be the second biggest oil producer in the united states. stuart: i am going to have a couple people around the table here. bear with me for a second. i will go around a table and ask you what chance do you think there is that california will go after the oil that it has got? charles payne. charles: the same california that is the 9 water to farmers because of environmental issues, i would say between zero and zero. liz: 50/50 odds. listen. they have to get there. stuart: close it out. >> i am north of 50/50 am not at zero because reality will set in. they need the money. it is the fastest access to the most money and most jobs anywhere. stuart: i am quoting you. reality will eventually set in. talking calif..
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that was great. thank you very much. we will see you again soon. also new at 10:00 listen to this. home prices soaring in southern california up almost 20% in one year. i say that is the terrific number. it proves my point the best investment in america is a single-family charles: [talking over each other] charles: you might get an argument. just sent some of the hardest-hit areas making sharp initial knee-jerk bounces is good news. [talking over each other] charles: a long way to go. stuart: in 2004-2005 when you could get 20%. liz: really check has bounced temporarily, 20% pop is big and you expect 5% or 10%. stuart: facebook just releasing that new search tool. could it make some serious money?
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where is the stock? nicole: making more money and using social media in a way that is lucrative and generate revenue. here is a look at facebook, a 0.2% still holding the $30 line. this will compete with other search engine types and got to tell you, cantor fitzgerald talking positively saying this is not a web search product like google but this service will leverage the incredible incredible amount of unstructured social data the company has and that is something facebook has that nobody else has which is all that data every single day. stuart: the bottom line is they worked up and got the buzz going just like apple but they didn't actually deliver a blockbuster. nicole: i don't disagree. we said it here on "varney and company," buy on rumor, sell on the news. people are buying last week into
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monday and when the news came out yesterday they sold off. stuart: we will see you later. we have been talking about this all morning. major part of new york's to gun law would require therapists, doctors, nurses and social workers to tell authorities if they believe it patient is likely to harm himself or others. judge andrew napolitano is here. i say this shifts the standard of privacy between therapist and patient and shifts the privacy line between therapist and patient and you say what? judge napolitano: i agree with you. the real question is can the legislature of new york do this? since privacy is a natural human rights not just protected by the federal constitution. stated differently, interpretations of the constitution by the supreme court put a floor on privacy below which no state may go. can the state of new york and interest of public safety go below the floor, the standard answer is no, it cannot. if you look at the statute here
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is what happens when the government enacts law in response to a public crisis and the governor wants to be the first to enact the law, statutes that are poorly written, and poorly thought through, not subject to public debate, not subject input by the experts who will be affected by it. the statues that says a health-care professional and you have defined it nicely, could be a doctor or a social worker or anyone in between who has reason to believe there is a substantial probability, that is the phrase, that a patient will engage in violence, has the option that whether or not to report it. stuart: the option or the obligation? judge napolitano: the statute is ambiguous. this is what happens when a statute is written in haste rather than studied by lawyers and experts who are going to be affected so it can anticipate our it will be used and
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interpreted because that one part of the statute, it says shall be required. another part of the statute says if in the exercise of their judgment they don't have to repeal it there could be no consequences to them for the decision not to repeal. stuart: that absolves them of liability. judge napolitano: this is a political fig leaf rushed for the legislature by governor cuomo and republicans as well as democrats because they wanted to create the false impression they were doing something to keep people safe. in reality this will not make anybody safer. it will invade privacy and it will give a false sense of security and that will make people less safe. stuart: before you go i know you want to get into this but before you go at 11:00 this morning some democrats hold a press conference and say please end the debt ceiling. no more debt ceiling. you don't like that. judge napolitano: what do they mean? the treasury could borrow whatever it wanted by statute and not need an authorization?
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this would -- it is not constitutional but it would take 180 degrees from the rule of the road before the federal reserve. and the congress had to approve each and every borrower including the amount borrowed, interest paid and identity of the lender. the purchaser of the bond. these people, secretary of the treasury to borrow whatever it wants? stuart: i believe so. i have not heard the wording. judge napolitano: we are marching toward greece even faster than now. stuart: is it for your learning greek? you are laughing. i don't know. judge napolitano: thank you very much. stuart: we will take it. thank you very much. next, the chief of police in a new york town. he is for gun control and when you hear his personal story you may understand why. he is coming up next.
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stuart: it went up like a rocket and coming down today. we're talking chipotle, big loser today. earnings missed estimates. that is bad news on wall street. higher food costs partially to blame. stock is down $15. here is a fast food chain with some good news, wendy's, profits beat thanks to a few new menu items, shares of wendy's virtually unchanged. munchkins could be headed to malibu. dunkin donuts plans to open stores in 2015 in malibu.
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stuart: duncan doughnuts in california right now. that will change. the company is looking franchisees'. they will open 300 new franchises in america. the team clothing store five below blaming hurricane sandy for missing estimates but the stock is up $1.32. new york police chief who supports gun control. what? customers didn't like it. so why do bas do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.
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stuart: some drama from london. helicopter crashed in the middle of london this morning, plowed
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into a construction crane working on a 52 story building ridge investigators not sure if it was smog or low visibility that caused the accident. two were killed including the pilot, 13 injured. occurred just south of the teams, central london. we have been talking about gun control on this program and our next guest has seen the horrors of gun violence firsthand. his uncle, shot and killed during a highly publicized mass shooting in 1993 with the long island rail road shooting. john aresta is with us. john aresta is police chief of milton, new york, chief of police there and he supports gun welcome to the program. >> good morning. stuart: do you support gun control because of your personal involvement and the impact on you from that mass shooting? >> i am support of it personally and professionally. stuart: as a police chief you support gun control and as a victim if i can put it like that of the mass shooting.
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would governor cuomo's new measures made into law late last night have stopped the long island shooting? >> it is very possible that they picked up on the mental health issue. stuart: that is colin ferguson? he was the man who shot seven people and killed them. i believe he was mentally unstable to be the very least. >> yes. stuart: are you saying governor cuomo's measures on the privacy of health professionals, have they reported him to the authorities? >> may have. nothing is guaranteed but would have been a step in the right direction. there were certain indicators. he was expelled from a delphi university for his brands, he was disciplined in a community college for his beliefs and illogical thinking. if he had been -- hat official
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-- had to report, may have stopped. stuart: what kind of gun did he used? >> he is the semiautomatic handgun. stuart: would that have been banned under governor cuomo's new rules? >> the magazine clip he used would have been banned. stuart: let's switch tracks and talk as a police chief. why are you in favor of gun control as a police chief? >> i send my guys out there every day to protect and serve the people of my village and the state of new york. we don't see a reason, i don't see a reason why anybody would need a 30 round clip or a 10 round clip for an assault rifle. members of my department are hunters, members of the nra and in talking to them and asking when was the last time anyone went hunting with an ar-15 or an m 4, the answer is nobody does. the only reason -- of the one big magazine clip as a measure of self defense? >> i don't know the last time
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you called the police and the police responded to help you, don't know of any times in my neighborhood or a round where somebody called police because we broke into the house and they had to defend their homes with a firearm. my village, we are at your house under a minute if you call us, surrounding communities the same thing. 1 to three minutes. i don't see a reason you would have to defend your home like that when the police are readily available. stuart: i will bring charles payne into this. charles: i think the debate, the opportunity here is totally misplaced. we are talking about gruesome, ugly things like mass shootings, the overall majority of this gun violence is really just some kid getting off of a bus with the wrong shared on who gets murdered in his neighborhood. we are going to miss an opportunity to address the source of this anger and violence by pinning and all on the and r. a. and kissel rifles.
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don't you think as a law-enforcement officer that is what we should be trying to get to? the overwhelming majority of these victims, who they are or where they are called the step the president is presenting will not help them? >> i agree. it is a start. we have to start somewhere. there are over 1 million assault rifles in new york state. had laws like this been enacted 20 years ago we would have a million. this is not something that would fix us for tomorrow. but hopefully the next generation won't have to deal with the amount of assault rifles and weapons of mass destruction. dagen: charles is talking about gang-related violence, seeing an increase in deaths from these high magazine clips. >> in my location we do not see it. however, two miles away, we do see drive-by shootings and somebody letting go with a 30 round clip and spraying houses,
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spraying cars and people caught in crossfire. stuart: police chief john aresta, appropriate name, we appreciate you being with us and we would like to hear your point of view. thank you very much. how times have changed. four years ago president obama promised an end to the discord in washington. how is that working out? my take on this is next. >> we gather because we have chosen hope over fear. unity of purpose over conflict. on this day we come to proclaim an end to the petty grievancess and false promises, recriminations and worn out dogmas that for too long have strangled our politics. we remain a young nation but in the words of scripture the time has come to set aside childish behavior. [ male announcer ] ahh... retirement. sit back, relax,
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>> we can talk about things confidentially, but if you make a threat or you tell me you're going to do something violent to another person, i will stop you physically and if necessary, i will turn you into the police. stuart: all right. that was father jonathan morris on how new york's new gun control law might apply to the clergy. under the law, doctors nurses therapists can report patients
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they feel may harm someone or even themselves even if there's no credible threat. it is an issue we have been discussing a lot on this program today. here's a novel idea for colleges. charge more for degrees that pay more after graduation. charge less for degrees that pay less when the student enters the workforce. that proposal comes as more families realize that no matter how cheap college isn't worth it. we talk to the woman who wrote the book on education in america, 10:35 this morning. the inauguration is next monday. the second term begins. my how times change. here's my take, four years ago, obama stood before america and spoke eloquently of his hopes for the future. he proclaimed unity of purpose over conflict and discord. his words, his words indeed. fast forward, two days ago, president obama engaged in extreme conflict and discord when he directly attacked his
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political opponents. the republicans he said were suspicious about whether the government should make sure kids in poverty get enough to eat. the republicans. his words. clearly the tone has changed. and then we have the economic backdrop to the inauguration. four years ago it was desperate times. but the president offered hope that we would spend a ton of money and recover quickly. fast forward, we've spent the money. we have not recovered. the economy has been in the doldrums for four long years and our debt is truly out of control. that's why there is no euphoria this time around. the thrill is gone. and the hope really did not pan out. instead, we have national anxiety. we look more and more like europe. we're deeper and deeper in debt and our president has no plan for change and offers no hope. the washington post headline tells the inauguration story. it calls the inauguration a big fizzle. ♪
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stuart: fitch says it may downgrade our u.s., the american credit rating if there is a delay in raising the debt ceiling. do you remember when the debt clock crossed 16 trillion? that was september the 4th. it crossed 16 trillion then. look where it is now, halfway to 17 trillion dollars. let's bring in scott shellidy.
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he's in chicago. he is a trader of all kinds of commodities including cattle. that's why he wears a cow jacket. tell me honestly, scott, if we're downgraded, let's suppose we are by fitch and we lose triple a according to to fitch, you don't care, do you? it doesn't make a blind bit of difference to you guys trading, does it? >> well, there will be some volume on the back of it but also it can have a ripple effect through the economy because of what types of bonds some of these portfolio managers have to keep in their portfolios. so we need to have the drama kings and queens in washington all get back on a bus and go back to the land of common sense and we need to stop the shenanigans and get on with our business. what we have had happen here another rerun of what we had to happen towards the end of the year. it is not good for us internationally. we have to get a solution. we have to get it done cleanly and we have to move it on. stuart: do you want to sign a debt ceiling increase, do it now? >> no, i don't, but at the same time i would like to have some common sense in the discussion. what we have got are two sides
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that are also putting other factions at work and other hidden agendas at work and i don't think that's going to get us anywhere soon. that's what makes us look bad, is the fight, not really the outcome, it is the fight. so if we can come to an agreement where we're all happy i think that's possible then we can move on. it makes us look embarrassing to the rest of the world. stuart: what do you think the odds are of a downgrade? >> i think there's a 30% chance, maybe 35% chance. stuart: okay. we will check it out. thank you very much scott shellady always a pleasure. the cost of college tuition continues to rise, got it, but the number of students enrolling is on a decline. fears of massive college debt and the lack of job opportunities when you graduate, that has a lot of families realizing that maybe college isn't worth the investment. joining us now is the author of, a great book, "the faculty lounges". welcome back. >> thanks. stuart: is this accurate? that fewer people are enrolling in college because college costs
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are way up and job prospects are bad? >> well, it is hard to determine exactly why people aren't enrolling. you are actually getting a shrinking pool in the sense that there are fewer high school graduates in certain places, just because of generational shifts, but there is definitely a sense that colleges have to become increasingly sensitive to costs and parents are becoming increasingly sensitive to costs. you had about two dozen colleges this year freeze their tuition as a result of all this pressure on them. stuart: do you think maybe some of them will start to lower tuition because they really need to attract people? >> well, you know, it's a little bit like our discussion about the federal budget, which is, you know, what colleges really need to be doing is cutting costs. they don't need to be, you know, cutting tuition. i mean, they have sort of put themselves in this situation where they have huge numbers of buildings. they have enormous construction costs. they have enormous administrative costs and really they have to balance their books. you can only do so much by raising tuition, and i think they are realizing that now. stuart: look, i will make a value judgment.
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i will make a flat out value judgment. in many cases college isn't worth it. there is no point in emerging from college with what, $50,000 worth of debt with a degree in a subject which doesn't give you an immediate occupation which is going to pay off your $50,000 in debt. college for many people isn't worth it. am i being extreme? >> a little bit stuart. because i mean the statistics still show that over the course of your lifetime your earnings will be higher as a result of a college degree. stuart: maybe your earnings would have been higher anyway because you're that kind of person, you're a go getter. >> it's true. our society, what happens is college is the stamp of approval. liz: even if a company's hr department liked to see the blue chip ivy league, i don't think they do, i think they want to see experience, that's why you have places like finland moving towards trade schools, not these fake degrees. i will tell you something, i'm so tired of colleges, these academics acting like donald
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trump mini me's running real estate empires. >> if we had a system in the u.s. very well known legitimate trade schools like european countries do that may work. here hr departments value the four year degree. stuart: i'm told that some colleges are beginning to charge more to students to study a particular major where the major results in a higher income and a better job prospects. >> no, no, they are charging less. stuart: they are charging less? >> the public universities are undertaking this because they want to encourage more people to go into math and science majors, largely. stuart: so they charge me less to go into an engineering degree. >> right. they want to encourage you to go into jobs that seem more productive for the economy. florida has been talking about this. >> interesting. >> i think it is an interesting idea, but there are sort of two problems with it. the first obviously is if you're going to into engineering you
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are going to make more money and the market is already telling you this is a good idea. if you ask me why more people aren't going into math science and engineering majors is that they are hard. these are hard subjects. liz: they have a lot of nerve charging more for that. universities should not be charging parents and families more for that degree. >> they want to discourage you from going into it. this is sort of the idea of the public university as economic driver. if you are the governor of florida and you say we would really like more engineers, how can we encourage more people to go into this? charles: maybe just eliminate those other courses. liz: 40 administrators to 1 student. charles: i think you hit on the real problem is as americans, you know, i think it starts much earlier than college. you know, softball, kids are getting a's should really be getting c's. we've set ourselves up for failure by the time the kids even gets to college. >> i think that's true. a lot of people aren't prepared
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to go into a lot of harder math and science majors. a lot of who start off with those majors, transfer into a softer major. stuart: do you agree with the following, that university is for the intellectual elite and not everybody is suitable? >> more and more people are going to college because they look at that statistic. it is very hard to get a good job with just a high school degree now. i don't think that should be the case. stuart: you did not answer the question. you did not answer the question. >> it should be for the intellectual elite? stuart: that's what it always was. charles: but it ain't now. [laughter] >> sit in on some of these classes and you will not find them elite at all. stuart: maybe i should do that. naomi, thank you very much. always good stuff. >> thank you. stuart: a whole bunch of kids set to join the president on stage as he announces new gun legislation in a little over an hour from now. is that good politics, good
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political theater? we're going to ask a mother of six that question, next. what are you doing?
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nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go... we got clnts in today. [ male announcer ] save on ground shipping at fedex office. stuart: big banks big profits. for example, jpmorgan chase said fourth quarter profit jumped 55%. its earnings for last year set a record. but the stock is virtually unchanged. another big bank, goldman sachs reported very big earnings, 2.8 billion in profit. triple the profit of a year ago. it made all that money in 13
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weeks. goldman stock is up 2 1/2%. facebook announced its new search feature at its headquarters. some say this has big earnings potential for facebook down the road. the market doesn't think so. still at 30 bucks a share. one of our big stories today, another hit on boeing and the dreamliner. two major japanese airlines grounded all their dreamliner jets for safety checks after a pilot smelled smoke and evacuated a flight. this comes after a string of problems with fuel leaks and electrical and brake problems too. boeing stock is a dow component, down 3%. [ male announcer ] where do you tn for legal matters?
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and now you're protected. stuart: you could see this coming, a lawmaker in missouri wants to enact a 1% sales tax on violent video games. he says the tax would finance mental health programs and law enforcement measures. that's all in response to the newtown shooting. guns are the subject of the day. at the white house too. peter barnes is there. peter, we're going to get the president's proposals and is it possible that the gun control measures will be the first item of business for the new congress when it's sworn in next week? peter: unlikely, stuart. those measures face an uphill climb in the congress. the one thing -- couple things that at least house republicans are talking about doing, perhaps sooner rather than later, is improved mental health measures as well as improved background checks. those are things that the nra is supporting, stuart. stuart: so those two proposals,
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they would go first into the mix of the new congress, is that right? peter: yeah, we would probably see hearings on those items first. but as far as -- hearings to get started. as far as an assault weapons ban, that will be tough to get through this congress. stuart: i'm interested because i thought there was a rush on here, do something now, but it appears that the legislative process is not going to handle something right now. it's not going to happen; right, peter? peter: yeah, and the president will push congress to do -- to try to do something quickly, but you just have congress has got a full plate. just finished up this hurricane sandy appropriations. some members are kind of exhausted from that. then you have got of course the budget fight going forward and the debt ceiling and all those things. and finally, you've got problems with senate democrats, some senate democrats who oppose major gun reforms. stuart: all right, peter, tell it how it is. thank you very much indeed. president obama will make
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his announcement surrounded by children who wrote him letters. mother of six is rejoining us. welcome back. >> thank you. stuart: the president is about to make the announcement, all these proposals on gun control, in the background right behind him, very young children. some people say this is the wrong use of children. and you say? >> i completely agree. i think the presidency of the united states and the weight of the presidency should be enough for the president to stand up and announce his new reforms on gun control. having the visual of the -- of a bunch of children is really not what we're looking for. we need the president to stand up with other adults saying we have the backs of the children, not the other way around. stuart: the other people with us today, you agree with miriam's
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position here? charles: the way you said it, we have the backs of children, by doing it this way, what you're suggesting is anyone against us is against kids. anyone who doesn't agree with my policies is agreeing that we should hurt children, that we should harm them and we should allow them to be harmed, that's despicable, that's below the line for the president to have to be able to articulate his message, it should be an intellectual conversation. if you believe these things, fine -- stuart: the three people around these table are all saying it shouldn't be done. you say it is despicable. >> we are not using kids as props. stuart: nicole petallides is on the floor of the new york stock exchange listening to our conversation. i say -- hold on a second, nicole. i say it is legitimate political theater. the president wants support to push his measures through congress. if he gets that support by using children, that's what he's doing. i don't think it's despicable at all. you say what? nicole: i'm a mother of two, and
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there are so many ways to get points across. are we going to ask children about whether or not people should be on welfare and get food stamps? are we going to hear stories about people who are suffering because they don't have a job and unemployment is so high? is he going to bring children in for every one of his points? i mean i understand where the children are coming from, but i just don't think it is a place to talk about serious issues. stuart: thanks nicole. back to you, miriam. i tend to think the right has gone overboard on this and it's almost a hysterical reaction to just children in the background when the president makes a legislative push. >> it's not just children in the background, when every choice and every decision is completely calculated. and i completely agree with charles. are we saying that people who are against this legislation hate kids? are we saying that there aren't fathers and there aren't mothers who -- stuart: well, you are saying that. do you think the implication is -- >> i think that's what the message is and i think that's horrible. kids are not to be used as a backdrop for the president to push across legislation so that
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we can -- liz: he's saying this is a reminder of what this is about, that children have been killed. >> is there a message here that's saying sandy hook was such a tragedy let's put something across as if it wasn't -- [talking over each other]. charles: why would you bring someone else's children on the stage? stuart: when the president was pushing for obama care, making a legislative push, on occasion he was surrounded by doctors. charles: adults. stuart: was he using the medical profession? yes he was. is it not legitimate? liz: they are the adults, that's the issue. some people just dressed up in scrubs. stuart: you have the last word. you are speechless. >> because i can't even imagine why -- who thought this was a good idea? i mean we have four intelligent people sitting a t a table --
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sitting at a table, we're all sitting here saying who thought this was a good idea? who thinks this is acceptable? i can't imagine anyone who does. anyone who does needs to look in a mirror and say why am i using a kid to do something like this? stuart: you make yourself forcibly along with our colleagues here and that was good stuff. thank you very much. >> thank you. stuart: the list of states that wants to eliminate income taxes just keeps on growing. find out the latest one to join the party after this. [ male announcer ] you are a business pro.
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stuart: add nebraska to the list of states to propose eliminating the state income tax. that makes the grand total of five states considering the move. all right, it looks to me like the beginnings of a tax revolt at the state level. the states are acting as the laboratory for tax reform nationwide. charles? i think it is a great thing. charles: i do think it is great. there are a whole lot of benefits we have talked about with this, bringing in business. here's one aspect that people don't talk about a lot, it also gets people motivated to go back to work, the idea of you know what? i get to keep a large part of my check. stuart: yes. charles: you know, we have gotten a lot of people in this country right now the alternative of just staying on the sofa is pretty attractive. it brings businesses back but also gets people reenergized in your state and they go back to work. liz: the big criticism about the sales tax it's regressive.
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stuart: drop the personal income tax at the state level and they switch to a sales tax. that's what they are talking about doing. liz: it's being criticized because it's being considered regressive. stuart: but everybody pays. liz: i don't like the government of the state knows my income. that bothers me. charles: making exception for food groceries and also utilities. stuart: that's true. nebraska's governor joins us tomorrow on this program. he's going to talk about all this, 9:20 eastern is when we kick it off. the highlight reel is next.
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stuart: a program note. tomorrow charles payne sit in this chair. i am out, charles and in. here is a highlight reel. the new gum law

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